HDFC Bank Personal Loan – Interest Rates and Charges Explained

Are you looking for a personal loan to tide over a temporary financial emergency? Your search should begin and end at HDFC Bank Personal Loans as you enjoy the benefits of the attractive HDFC Bank personal loan interest rates. 

HDFC Bank offers an extensive range of personal loans to cater to a wide section of society. It can be for almost any reason ranging from a medical emergency to having a fun trip abroad. Here is the complete list of personal loans offered by HDFC Bank. 

• Marriage Loan – To meet the wedding expenses of self, children, or other family members.
• Travel Loan – have a great time visiting your international dream location 
• Emergency Loan – fund the medical expenses of self or family members
• Debt Consolidation Loan – Consolidate all your obligations at a single location and simplify your repayment
• Home Renovation – for repairs and maintenance of your home
• Personal Loan for Students – funding of lodging, boarding, travel, books, equipment, and other requirements of students 
• Personal Loan for teachers – cater to the financial needs of a specific profession, teaching
• Personal Loan for Women – an exclusive product for women entrepreneurs and salaried persons
• Personal Loan for Salaried – a general personal loan product for salaried individuals
• Personal Loan for Government Employees – unique product for Government employees

All these personal loans are available online and also at the respective HDFC Bank branches.

HDFC Bank Personal Loan Interest Rate

HDFC Bank stipulates a rack interest rate of 10.50% to 21.00%, depending on various factors.

The HDFC Bank Personal Loan interest rates are fixed at the time of the sanction of the loan facility and remain so until its closure. A rack interest rate allows the bank to determine different interest rates for different borrowers, depending on their eligibility and satisfying specific conditions. Under no circumstances will the interest rate go below 10.50% or above 21.00%. 

The rate of interest for individual borrowers depends on various factors.

• Salaried employees enjoy a better interest rate than self-employed individuals. It is because of the regularity of salaried income. The self-employed person does not have a regular income stream. Hence, they are considered a riskier proposition to the salaried class.
• Salaried employees of Government departments, public sector undertakings, and specific high-profile corporate sectors get preferential treatment in the HDFC Bank personal loan interest rates than salaried individuals employed in the private and unorganized sector.
• Individuals holding salary accounts with HDFC Bank get the advantage of a lower interest rate than those not having any account with the bank.
• The credit rating of the individual borrower determines the interest rate on the personal loan. The better the borrower’s credit rating, the lower is the interest rate charged by HDFC Bank.

Thus, you can see that the HDFC Bank personal loan interest rates vary from one individual to another.

HDFC Bank Personal Loan Charges Explained

Compared to HDFC Bank Personal Loan interest rates, the personal loan charges are more transparent. As far as interest rates are concerned, they vary from one borrower to another, depending on a case-to-case basis. The loan charges structure is more straightforward to understand.

• Loan Processing Charges – The loan processing charges can be up to 2.50% of the personal loan amount with a maximum of Rs 25,000 for the salaried staff. It infers that non-salaried individuals do not get the concession of the ceiling limit stipulated by the bank.
• Stamp Duty and other Statutory charges – It depends on State laws. The amount can vary from one state to another in India.
• Overdue EMI Interest – Generally, one should repay the EMI on time on the stipulated date. Suppose there is a delay in the repayment. In that case, the bank charges 2% per month on the delayed EMI or the principal amount overdue.
• Legal and Incidental Charges – These charges are as per actuals. Such cases arise when there is a continuous default, and the bank contemplates taking legal action. Incidental charges could include postage and other charges on the various communications sent to the client.
• Amortization Schedule Charges – The borrower can demand an amortization schedule of the personal Loan. This schedule is available to the customer on the payment of Rs 200 on each occasion. It includes the details of monthly repayment of principal and interest amount throughout the entire loan tenure.
• Cheque Swapping Charges – At times, the borrower might decide to swap the PDCs already deposited with HDFC Bank with cheques from some other bank. Alternatively, the borrower might switch the NACH standing instruction to another bank. Each such swap costs the borrower Rs 500.
• Cheque Bounce Charges – These charges are with effect from July 01, 2021. 

1. The first return is charged at Rs 450 plus taxes per instance.
2. The second such return entails a charge of Rs 500 plus taxes per instance.
3. The third return onwards requires the borrower to pay Rs 550 plus taxes for each instance.

Senior citizens get a discount of 10% on these charges.

• Loan Cancellation Charges – The bank does not charge any amount for cancelling a loan application. However, if the bank has already disbursed the Loan, it can recover interest for the interim period. The bank can retain the processing fee. The borrower can ask the bank to rebook the Loan on the payment of Rs 1000.
• Prepayment/Foreclosure charges – The charges are as follows.

HDFC Bank does not allow any prepayment in part or full until the repayment of 12 EMIs. Subsequently, it allows part prepayment up to 25% of the principal amount outstanding once in any financial year and a maximum of twice during the loan tenure.

Charges for prepayment: On the principal outstanding amount

13th to 24th month – 4% of the principal outstanding

25th to 36th month – 3% of the principal outstanding

More than 36 months – 2% of the principal outstanding

If the borrower makes a part prepayment, the charges are calculated on the part prepayment amount and not the principal outstanding.

Final Words

Every borrower should read the fine print of the loan sanction letter and understand the terms and conditions carefully. We have clarified the HDFC Bank personal loan interest rates and charges for your convenience.